Henri Fayol is broadly recognized as the soonest pioneer and founder of modern management theory (Parker and Ritson, 2005).
Fayol’s management theories were first proposed in a book called Generaland Industrial Management during the early 1900s. Fayol’s principlesof Management consist of 14 principles of Management. The 14 principles of Management have guided the early20th-century managers to efficiently organize and interact with employees.
Fayol also proposed that management is a universal humanactivity that can be applied to different parts of our life. For example, fromfamily as well as to organisation. However, some people criticized Fayol’sprinciple is not designed to cope with to modern world, especially the rapidchange condition in the 21st century.
Despite of many criticism, Fayol’s work still shaped the managementpractices and theories in 21st century. In this essay, therewill be three main parts beginning with the analysis of Fayol’s work, based onsome academic research. The relevance ofFayol’s principle of Management to modern ideas of Management will then bediscussed. A conclusion will be made atlast. According to Fayol(1940), an organization consists of a social body and amaterial organism.
The 14 principles of management consist of division of work,authority and responsibilities, discipline, unity of command, unity of direction,subordination of individual interest to general interest, Remuneration, Centralizationor Decentralization, Scalar Chain, Order, Equity, Stability of Tenure of Personnel,initiative and Esprit de Crops. One of the most famous principle would probablybe the division of work. Different from “divisionof labour”, called by Adam Smith in 1776, Fayol (1940) states that the objectof division of work is to produce more and better work with the same effort. In the article of “Fayol-standing the testof time”, McLean (2011) stated the division of work guaranteesthe exertion and attention will be focused around exceptional segments of thework. Output will be enhanced when workers are well specialized. As the workerswill gain more and more experience on their own working field.
According toPeter F. Drucker(XXXX), after practicing the division of work, the 20thcentury has seen a rate of productivity increment every year. The productivityhas risen 50 fold since the time of Frederick Taylor, who went about as animpetus in the advancement of division of work.
There is an example which canshow the fact, namely the Ford motor company. The Ford motor company appliedthe division of work and made the process of work standardization andfunctional specialization. While one worker is assembling the wheels, anotherworker can assemble the dashboard. It reduced a lot of production time andleads the Ford company to success.
However, some people argue that division of work may lead to a declinein productivity when it was practiced for a long time. Since workers may feelbored about consistently repeating the same work. After the workers feel bored, their workingincentive may eventually decrease. As a result, it causes a reduction inproductivity. Apart from division of work, Fayol (1940) alsoconsidered that discipline is the main point to ensure the business is runningsmooth. Fayol said “Without discipline, noenterprise could prosper”.
However,Fayol thinks that the discipline from the employees should depend essentiallyon the worthiness of their leaders. Which means that employees can reject to obey ineptitude leaders. AsFayol (1940) introduced, Unity of Command requires that an “employee should receive orders from one superior only”. It can completely avoid the conflict indifferent command given by different superior. This practice addressed theclear issue of leadership.
In AlfredSlaon(XXXX), Alfred Sloan, the long-time President, chairman and CEO of GeneralMotors Corporation, stated he applied the Unity of Command in the GeneralMotors Corporation. He said that it is important to command and the determinepower from the chief executive. With hislead on General Motors Corporation by using Unity of Command, the Corporationhas become one of the most successful enterprise in the world. Fayol (1940)suggested to management to “inspireand maintain everyone’s initiative”. With higher initiative workers, thecompany will become stronger and more productive.
It may also reduce theworkload of the mangers. Therefore, right strategies to increase employee’sinitiative is vital. Apart from theabove, Esprit de Crops (Team Spirit), which is the last of the 14principles. States that organizations shouldalways attempt to promote team spirit and unity. Management should inspireharmony and general good feelings among the workers. Fayol (1940)suggested that mangers should encouraging employees to work to the best oftheir abilities, as well as sharing what they have learned with others. Although, thereis continued debate on the relevance ofFayol’s principle of Management to post-capitalist ideasof Management.
But it is a fact that Fayol’s principle has provideda vital base for the development of the modern Management. From the Discipline,according to (Achinivu Godwin), it was observed that thereare punishments for negative activities depicted by workers and they are madeto show up before a disciplinary board of trustees pending the level of defaultand such council is set up by the Human Resource and look into the issue andthere are techniques to uphold such which incorporate; derivation ofcompensations, suspension, end of appointment. Therefore, this principle is stillproviding a clearly-defined rule in order to achieve good employees’ obedience anddiscipline. The Unity of Command also contributed to the moderncompanies like Google Inc.
At the first glance, people may think that GoogleInc. is violating the Unity of Command of Fayol’s principles. Since Google iswas run by three CEOs which is Sergey, Larry and Eric. However, when we lookdeeply into the job descriptions of them, Larry, Eric and Sergey act differentcharacters in Google.
Larry act as the main strategist, Eric is the one whomanages the sales and Sergey is responsible for the primary technologist. Mostof the time, they can just make decision on their own part and without consentfrom the other two partners. It reflects that